Latam Insights: El Salvador's Bitcoin 'Shuffling,' Brazil Gets 50% Tariffs

2025-08-03 21:40:20

Welcome to Latam Insights, a compilation of the most relevant crypto news from Latin America over the past week. In this week’s edition, the IMF reiterates that El Salvador is just moving bitcoin from one place to another, Trump gives Brazil a 50% tariff gift, and U.S lawmakers travel to Argentina to examine the local crypto market.

One-Two: IMF Reiterates That El Salvador Is Just Shuffling Bitcoin

The alleged bitcoin purchases by El Salvador are again in the spotlight following new statements made by International Monetary Fund (IMF) authorities. At a press briefing held on July 24, the IMF indirectly called out President Nayib Bukele and the National Bitcoin Office (ONBTC) of El Salvador, reiterating that the bitcoin held by the country had not increased since the $1.4 billion credit agreement was inked by the two parties.

During the briefing, one of the journalists directly confronted Julie Kozack, Director of the Communications Department of the IMF, on the issue, stating that the status of these alleged bitcoin purchases was still unclear.

“The government says they’re still buying Bitcoin, and it seems that the IMF is saying they are just moving things around between wallets. And I wanted you to address that,” Inner City Press’ Matthew Lee asked.

Expanding on the issue, she explained:

The accumulation of Bitcoin by the Strategic Bitcoin Reserve Fund is consistent with program conditionality. And the increases in the Bitcoin Reserve Fund relate to movements across various government-owned wallets.

Trump Slaps Brazil and Canada With 50% and 35% Tariffs; Mexico Gets Breathing Room

The Trump Administration has officially slapped Brazil and Canada with tariffs of 50% and 35% respectively, levies that will affect the trading relations between these countries.

On July 30, President Donald Trump signed an executive order making his earlier threats official, stating that this decision was an answer to the Brazilian government’s recent actions, which posed “an unusual and extraordinary threat to the national security, foreign policy, and economy of the United States.”

The White House explained that Brazilian institutions have compelled U.S.-based social network companies to “censor political speech, deplatform users, turn over sensitive U.S. user data, or change their content moderation policies.” The prosecution of former President Jair Bolsonaro, a close friend of Trump who allegedly attempted a coup, is also mentioned as a justification for these measures.

US Lawmakers Travel to Argentina: Local Crypto Ecosystem Examined

Argentina, a country known for its citizens’ embrace of crypto as a means of countering devaluation and crippling inflation, was visited by a group of U.S. lawmakers to examine the dynamics of its local markets and regulatory framework.

The group, led by French Hill, Chairman of the House Financial Services Committee, and including Representatives Don Davis, Warren Davidson, Janelle Bynum, Troy Downing, and Tim Moore, met with President Javier Milei to discuss the joint challenges of crypto regulation and examine how the country has fared so far in this regard.

According to a source present at the meetings, lawmakers and Milei met on Monday. “The idea is to explain what the Genius and Clarity Act are, understand the ecosystem, its players, and the main problems and challenges,” the local source commented.